Roland Berger’s study how to maximize bike sharing’s potential.

Their study provides a comprehensive overview of developments on the bike sharing market

The bike sharing boom

Sharing systems are galvanizing a renewed interest in bikes and biking—and at an annual growth rate of 20%, market size estimates of 3.6 to 5.3 billion euros by 2020 are far from unrealistic. This isn’t the only figure attracting a boom in investment, however; EBIT potential is 10-15%. “The market for bike sharing solutions offers enormous potential the world over,” explains Roland Berger Partner Tobias Schönberg. “But providers must think their business model through from start to finish for success.” Our study into bike sharing outlines how to maximize that potential.

Three factors are driving the bike sharing boom.

First of all, digitization is making the cycling experience more attractive than ever. In Copenhagen, navigational devices integrate with the bikes. On a larger scale, digitization could also help connect bike sharing systems with traditional public transport.
E-bikes, although still less visible in the market, offer a less physically demanding riding experience and are opening the up the market to a broader range of users.

Still, we have identified six success factors that should also ideally be in place: a high density network, multimodal integration, as simple a handling process as possible, attractive pricing, durable yet comfortable bikes, and the support of local authorities. This leaves open the possibility that bike sharing will become intertwined into the transport systems people are already using. By addressing customer needs and issues specific to the local market, businesses can attract more and more users to a smooth, shared cycling experience.

Management summary (in a nutshell)

Key trends in innovative mobility

>Major innovations and new regulations are on the way to reshaping the mobility market
>New business models follow an asset-light approach allowing consumers to share mobility offerings
>Bike sharing emerged as one of the most-trending forms of mobility in the current era
>Digitalization enables bike sharing to become a fully integrated part of urban mobility

Bike sharing market development

>The global bike sharing market has grown at an extremely fast rate over the past few years
>More than 1,250 bike sharing systems are now available in over 70 countries
>Market growthdriven mainly by fast-expanding Chinese operators
>Overall, the bike sharing market is expected to grow continuously by 20% in the years ahead

Role of bike sharing in urban mobility

>Bike sharing established itself as a low-priced and convenient alternative in many cities
>The three basic operating models are dock-based, hybrid and free-floating
>Key success factors for bike sharing are a high-density network and high-quality bikes
>Integrated mobility platforms enable bike sharing to become an essential part of intermodal mobility

Future of bike sharing

>Bike sharing operators will have to proactively shape the mobility market to stay competitive
>Intense intra-city competition will lead to significant service improvements
>Use of smart analytics and artificial intelligence will enable operators to optimize their networks
>Dedicated infrastructure and bicycle-friendly regulations will aim to promote bike sharing